OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE

3500 DEFENSE PENTAGON

WASHINGTON, DC 20301-3500 

 

 SUSTAINMENT

MEMORANDUM FOR SUPPLY DISCREPANCY REPORTING PROCESS REVIEW 

COMMITTEE 

SUBJECT: Approved Defense Logistics Management Standards Change 1443, Product Quality 

Deficiency Report Policy Migration 

 The Defense Logistics Management Standards change, as outlined in the attachment, is 

approved for implementation. 

 Addressees may direct questions to Mark Rockwell e-mail: DEDSO.PQDR@dla.mil. 

Others must contact their designated PRC representative available at https://www.dla.mil 

/Defense-Data-Standards/Committees/Contacts/. 

 Leigh E. Method, SES 

 Deputy Assistant Secretary of Defense 

 for Logistics 

Attachment: 

As stated 

cc: 

OUSD(C) 

DLA J6DS 
Attachment, ADC 1443 

 Page 1 

Approved Defense Logistics Management Standards Change 1443

Product Quality Deficiency Report Policy Migration

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Technical POC: Defense Logistics Agency, Logistics Operations, Steven Nace, 571-

477-4194, Steven.Nace@dla.mil

b. Functional POC: 

(1) Defense Logistics Agency, Logistics Operations, Steven Nace, 571-477-4194, 

Steven.Nace@dla.mil

(2) Headquarters, Army Materiel Command (AMCOL-MC), Marc D. Saperstein, 

973-769-6410, Marc.D.Saperstein.civ@army.mil 

(3) Headquarters, United States Marine Corps, Chief Warrant Office (CWO5) 

Jason Pierce, 571-256-7127, Jason.M.Pierce@usmc.mil 

(4) Naval Supply Systems Command, Nicole Van Schilt, 717-605-1092, 

Nicole.L.VanSchilt.civ@us.navy.mil 

(5) Headquarters, Air Force Materiel Command, Fernando Browning, 937-904-

0712, Fernando.Browning.1@us.af.mil 

(6) Defense Contract Management Agency, Phil Wedgie, 804-536-6638, 

Philip.Wedgie.civ@mail.mil 

4. REASON FOR CHANGE: Substantive updates made after proposed change staffing are 

identified in green highlighting. 

a. Bottom Line Up-Front: This change coincides with an update being made in the 

reissuance of DoDM 4140.01-V5 (Reference 9.a.) and DoDM 4140.01-V6 (Reference 9.b.). It 

serves to inform the Department of Defense (DoD) Components that the DLM 4000.25, Volume 

2, Chapter 24 (Reference 9.c.), is replacing Joint Service Regulation DLAR 4155.24/AR 702- 

7/SECNAVINST 4855.21/AFI 21-115/DCMA INST 1102 (Reference 9.d.) as the DoD’s 

authoritative source for Product Quality Deficiency Report (PQDR) related guidance. 

 Consolidating PQDR guidance into a single publication will streamline the way the DoD 

makes changes to policy requirements, transactional processing, and electronic data interchange 

(EDI) programming. It will allow these types of changes to be made simultaneously, utilizing a 

proven methodology in the Defense Logistics Management Standards (DLMS) change 

management process. 

b. Background: Since 2019, the DoD PQDR Steering Committee, made up of military 

service and defense agency appointed policy representatives, PQDR processing system experts, 

and other advisers, has made a concerted effort to focus on transformational ways to improve 
Attachment, ADC 1443 

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PQDR processing. In their review, the committee found the lack of system programming in 

accordance with the DLMS 842P PQDR Implementation Convention (IC) and the rate at which 

PQDR policies and procedures are revised to improve the process had been historically 

inadequate. 

 In today’s DoD supply chain management operating environment, the digital exchange of 

information between DoD Component information systems is critically important to support 

enterprise-wide data analytics and provide senior leaders with the level of information needed to 

make informed business decisions. Consequently, when changes are made to policies and 

procedures outside of DLM 4000.25, Volume 2, Chapter 24, Product Quality Deficiency Report, 

such as current PQDR policy, it negatively impacts the systemic flow of data between PQDR 

processing systems due to conflicting information. 

 By centralizing all PQDR related policies, transactional processing procedures, and system 

programming requirements into Reference 9.c., as has been done with similar logistics processes 

such as Supply Discrepancy Reports (SDR), it will allow the DoD to complete all the necessary 

updates through a single publication change, utilizing the DLMS change management process. 

This process improvement will ensure that both the business rules required by policy and the 

system programming needs are documented and adjudicated simultaneously. Additionally, it 

will reduce the external publications used by the military services and defense agencies to ensure 

compliance with DoD PQDR processing requirements. 

2. CHANGE IN DETAIL: 

a. Technical Details: 

(1) This change formally documents within Reference 9.c., that it has been 

established as the new DoD authoritative source for PQDR related guidance. The change is 

being done in conjunction with revisions currently being made to reissuance of References 9.a. 

and 9.b. 

(2) Full migration of all PQDR guidance from Reference 9.d. into Reference 9.c. 

will take place over the course of the next 12 months following the approved change. Full 

migration may take place with a single change or be migrated in phases through multiple 

changes. Pending the full change an eventual cancellation of Reference 9.d., DoD Component 

personnel must first consult Reference 9.c. for all PQDR related program guidance before 

referring to the previous source authority at Reference 9.d. 

(3) Pending full DLMS migration of PQDR guidance, DoD Components should 

consult their corresponding representative listed in section 1.b. of this change for questions 

related to PQDR guidance. 

b. Revised Transaction Flow: This change does not revise transactional processing 

already established in DLMS 842P PQDR IC.

3. IMPLEMENTATION TARGET: This change will take place immediately upon approval. 

Full migration of all PQDR related guidance from Reference 9.d. into Reference 9.c. is estimated 
Attachment, ADC 1443 

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at one-year from approval of this change. It will not require any targeted implementation by 

Defense Automated Addressing System (DAAS) or the PQDR processing systems. 

4. TECHNICAL IMPACT: 

a. Additions or Changes to Data Elements: N/A. 

b. Automated Information Systems (AIS): N/A. 

c. Defense Automatic Addressing System (DAAS): N/A.

5. PUBLICATION/POLICY IMPACT: 

a. Defense Logistics Manual (DLM) 4000.25: 

(1) DLM 4000.25, Volume 2, Chapter 24, Product Quality Deficiency Report, 

October 9, 2018 

b. Non-DLM 4000.25 Publications: 

(1) DoDM 4140.01-V5, DoD Supply Chain Materiel Management Procedures: 

Delivery of Materiel, February 10, 2014 

(2) DoDM 4140.01-V6, DoD Supply Chain Materiel Management Procedures: 

Materiel Returns, Retention, and Disposition, March 8, 2017 

(3) DoDM 4140.01-V8, DoD Supply Chain Materiel Management Procedures: 

Materiel Data Management and Exchange, February 10, 2014 

(4) DLAI 4155.28, Enterprise Product Quality Deficiency Report (PQDR) 

Investigation and Restitution Process, March 11, 2022 

(5) DLA eSOP 4155,28-001, Product Quality Deficiency Report (PQDR) 

Processing, November 5, 2019 

(6) DLA eSOP 4155.28-02, Communication Between Technical/Quality and 

Procurement during Product Quality Deficiency Report (PQDR) Investigations, June 14, 2018 

(7) DLA eSOP 4155.28-003, Product Quality Deficiency Report (PQDR) Exhibit 

Return, February 10. 2021 

(8) Air Force Instruction (AFI) 21-115, Product Quality Deficiency Report 

Program 

(9) Air Force 00-35d-54, Technical Manual: US Air Force Deficiency Reporting, 

Investigation, and Resolution 

(10) NAVSUPINST 4855.7 Product Quality Deficiency Reporting and Defective 

Material Summary 
Attachment, ADC 1443 

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(11) NAVSEA Instruction 4855.040 - Counterfeit Material Mitigation 

(12) NAVSOP 3683 - DoN SOP PDREP 

(13) SECNAV INSTRUCTION 4855.3D - PRODUCT DATA REPORTING 

AND EVALUATION PROGRAM 

(14) OPNAV INSTRUCTION 4790.15D CHANGE TRANSMITTAL 2 - 

AIRCRAFT LAUNCH AND RECOVERY EQUIPMENT MAINTENANCE PROGRAM 

(ALREMP) 

(15) DOD INSTRUCTION 5200.49 - OVERSIGHT OF THE COLLECTION 

AND EXCHANGE OF INFORMATION USING THE GOVERNMENT-INDUSTRY DATA 

EXCHANGE PROGRAM 

(16) NAVSEA, NAVAIR, NAVSUP SOPs/Desk Guides/Training 

6. ASSUMPTIONS: The approved version of this change will coincide with the final signature 

authority of References 9.a. and 9.b. 

7. FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION (FIAR), MATERIAL 

WEAKNESS, AND AUDIT-RELATED INFORMATION: N/A.

a. Notices of Findings and Recommendations (NFR): N/A.

b. Corrective Action Plan (CAP) References: N/A.

c. Other FIAR, Material Weakness, and Audit-Related Information: N/A.

8. END-TO-END TESTING REQUIREMENTS: This change will not require any testing 

between DAAS and the PQDR processing information systems.

9. REFERENCES: 

a. DoD Manual 4140.01-V5, DoD Supply Chain Materiel Management Procedures: 

Delivery of Materiel, under revision 

b. DoDM 4140.01-V6, DoD Supply Chain Materiel Management Procedures: Materiel 

Returns, Retention, and Disposition, March 8, 2017 

c. DLM 4000.25, Volume 2, Chapter 24, Product Quality Deficiency Report, October 9, 

2018 

d. DLAR 4155.24/AR 702- 7/SECNAVINST 4855.21/AFI 21-115/DCMA INST 1102, 

August 1, 2022 
Attachment, ADC 1443 

 Page 5 

10. PROPOSED DLMS CHANGE (PDC) 1443 RESPONSE/COMMENT RESOLUTION: 

Component Response/Comment Disposition 

1. DLA Concur. None noted. 

2. Navy Concur with comment. 

Comment: 

Here is a list of policy that will need to be updated 

when this PDC is approved: 

1. NAVSUPINST 4855.7 PRODUCT QUALITY 

DEFICIENCY REPORTING AND 

DEFECTIVE MATERIAL SUMMARY 

2. DLM 4000.25, Volume 2, 

a. CHAPTER 13 - MATERIEL RECEIPT 

b. Chapter 17- Supply Discrepancy 

Reporting 

3. NAVSEA Instruction 4855.040 - Counterfeit 

Material Mitigation 

4. NAVSOP 3683 - DoN SOP PDREP 

5. SECNAV INSTRUCTION 4855.3D - 

PRODUCT DATA REPORTING AND 

EVALUATION PROGRAM 

6. OPNAV INSTRUCTION 4790.15D 

CHANGE TRANSMITTAL 2 - AIRCRAFT 

LAUNCH AND RECOVERY EQUIPMENT 

MAINTENANCE PROGRAM (ALREMP) 

7. DOD INSTRUCTION 5200.49 - 

OVERSIGHT OF THE COLLECTION AND 

EXCHANGE OF INFORMATION USING 

THE GOVERNMENT-INDUSTRY DATA 

EXCHANGE PROGRAM 

8. NAVSEA, NAVAIR, NAVSUP SOPs/Desk 

Guides/Training 

DEDSO Response: 

ADC 1443 updated with the 

Navy recommendation 

update to include Navy 

policy/manual updates 

required as a result of 

approved ADC 1443. 

3. Air Force Concur with comment. 

Comment. 

Add the following publications: AFI 21-115, 

PRODUCT QUALITY DEFICIENCY REPORT 

PROGRAM and TO 00-35D-54, TECHNICAL 

MANUAL: USAF DEFICIENCY REPORTING, 

INVESTIGATION, AND RESOLUTION. 

DEDSO Response: 

ADC updated with the 

referenced/impacted USAF 

publications. 

4. US Army Concur. As noted. 

5. USASAC Concur. As noted. 

6. USMC None. None noted. 
Attachment, ADC 1443 

 Page 6 

7. DAAS Concur. As noted. 

8. USTRANSCOM Abstain. As noted. 

9. GSA None. None noted. 

10. DCMA Concur. As noted. 
Enclosure ADC 1443 

Page 1 

Enclosure 

Revised DLM 4000.25, Volume 2, Chapter 24 

Changes are identified by bold red italics and double strike-though text. 

C24. CHAPTER 24 

PRODUCT QUALITY DEFICIENCY REPORT PROGRAM 

C24.1. GENERAL. This chapter replaces DLAR 4155.24/AR 702-7/SECNAVINST 

4855.5 series/AFI 21-115/DCMA INST 1102, as the DoD Product Quality Deficiency 

Report (PQDR) Program authoritative source for provides general information 

supporting the DoD Product Quality Deficiency Report (PQDR) Program. The 

authoritative source for detail procedures pertaining to this program. is DoD 

Components must first consult this chapter for PQDR program guidance before 

referring to DLAR 4155.24/AR 702-7/SECNAVINST 4855.5 series/AFI 21-115/DCMA 

INST 1102, pending full migration of guidance and the eventual cancellation of the 

Joint Service Regulation. Product Quality Deficiency Report Program (refer to the 

DLA PQDR Home Page). The DoD PQDR program requires DoD Component capture 

and exchange product quality deficiency information to facilitate root cause 

determinations, corrective actions, reliability analysis, and recoupment actions 

(contractor caused deficiencies). This chapter provides an overview of the DLMS 

transaction exchange supporting the PQDR program. Initial implementation will include 

the DLA Enterprise Business Systems (EBS), SECNAV Product Data Reporting and 

Evaluation Program (PDREP), and NAVAIRSYSCOM Joint Deficiency Reporting 

System (JDRS). Initially, all transactions will pass through the PQDR Inter-service 

Interface (PQDR II). Components developing new PQDR processing systems will 

comply with this DLMS standard to exchange data with other DoD PQDR systems.